OUR STRATEGY

Performance against Strategy

OUR STRATEGY

Performance against Strategy

ADMINISTRATIVE RIGOUR

Aspiration

  • Build administrative rigor in all processes

Strategic Priorities

  • Manage bad debts rigorously by enhancing debt collections tactics

FY22 Highlights

  • Improved provision for expected credit losses as a % of revenue
  • Increased net cash reserves
  • All BCP plans signed off (live tested and successful)

Contribution to Long-term Sustainable Value

Related Material
Matters

  • Future changing world
  • Financial and organisational sustainability

ADMINISTRATIVE RIGOUR

Aspiration

  • Build administrative rigor in all processes

Strategic Priorities

  • Manage bad debts rigorously by enhancing debt collections tactics

FY22 Highlights

  • Improved provision for expected credit losses as a % of revenue
  • Increased net cash reserves
  • All BCP plans signed off (live tested and successful)

Contribution to Long-term Sustainable Value

Related Material
Matters

  • Future changing world
  • Financial and organisational sustainability

Reflecting on our performance against the 2021/2022 Scorecard and how we added value

Target achieved/exceeded New initiative on track against current plan (no concerns Improvements YOY No Concerns yet Below Target

Reflecting on our performance against the 2021/2022 Scorecard and how we added value

Target achieved/exceeded New initiative on track against current plan (no concerns Improvements YOY No Concerns yet Below Target

Below, we further unpack the various components of our performance against our iHEALTh strategy

Key Measured Initiatives

Below, we further unpack the various components of our performance against our iHEALTh strategy

Key Measured Initiatives

Debtors’ days

Target

  • 140 days

IR 2021

  • 161 days

Progress for FY22

  • 155 days
  • Increased focus
  • Initiatives for improvement of cash collections
  • Debt management in consultation with DoH, medical aids and RAF

target for 2022/2023

  • <=140 days
  • Approval of an “Order-to-Collect” process improvement project
  • Segment current debtors and strategies to deal with these
  • Increase focus on stakeholder relations at National and Provincial levels

Debtors’ days

Target

  • 140 days

IR 2021

  • 161 days

Progress for FY22

  • 155 days
  • Increased focus
  • Initiatives for improvement of cash collections
  • Debt management in consultation with DoH, medical aids and RAF

target for 2022/2023

  • <=140 days
  • Approval of an “Order-to-Collect” process improvement project
  • Segment current debtors and strategies to deal with these
  • Increase focus on stakeholder relations at National and Provincial levels

Provision for credit losses as a % of Revenue

Target

  • 6%

IR 2021

  • 2.93%

Progress for FY22

  • 1.3%

target for 2022/2023

  • <=6%
  • Collections are improved; legacy debt impact continues to impact - takes longer to collect
  • Carefully monitor in deteriorating macro to ensure timely collection of debt and to minimise provisions

Provision for credit losses as a % of Revenue

Target

  • 6%

IR 2021

  • 2.93%

Progress for FY22

  • 1.3%

target for 2022/2023

  • <=6%
  • Collections are improved; legacy debt impact continues to impact - takes longer to collect
  • Carefully monitor in deteriorating macro to ensure timely collection of debt and to minimise provisions

Gross Revenue as a % to budget

Target

  • 100%

IR 2021

  • 104%

Progress for FY22

  • 96%

target for 2022/2023

  • 100%

Gross Revenue as a % to budget

Target

  • 100%

IR 2021

  • 104%

Progress for FY22

  • 96%

target for 2022/2023

  • 100%

Surplus % of Revenue, Overall measure for profitability

Target

  • 1.7% (FY22)

IR 2021

  • 6.6%

Progress for FY22

  • 4.6%

target for 2022/2023

  • >=1%
  • In FY22 kept fee increases below inflation in line with affordability
  • Expenditure (staff and consumables are at/above inflation)
  • Carefully managed to ensure at least a breakeven

Surplus % of Revenue, Overall measure for profitability

Target

  • 1.7% (FY22)

IR 2021

  • 6.6%

Progress for FY22

  • 4.6%

target for 2022/2023

  • >=1%
  • In FY22 kept fee increases below inflation in line with affordability
  • Expenditure (staff and consumables are at/above inflation)
  • Carefully managed to ensure at least a breakeven

Availability of critical IT services during agreed operating times

Target

  • 98%

IR 2021

  • 98.4%

Progress for FY22

  • 98.1%

target for 2022/2023

  • >=98%
  • Ongoing loadshedding remains a concern

Availability of critical IT services during agreed operating times

Target

  • 98%

IR 2021

  • 98.4%

Progress for FY22

  • 98.1%

target for 2022/2023

  • >=98%
  • Ongoing loadshedding remains a concern

Net cash reserves

Target

  •  R1.6 bn

IR 2021

  • R1.8bn

Progress for FY22

  • R1.9bn

target for 2022/2023

  • >=R1.5 bn
  • Ensure cash reserves maintained to ensure Business Continuity in case of extended non-payment by debtors
  • Utilise some cash reserves for important projects that require capital expenditure, refurbishments, infrastructure, new equipment etc

Net cash reserves

Target

  •  R1.6 bn

IR 2021

  • R1.8bn

Progress for FY22

  • R1.9bn

target for 2022/2023

  • >=R1.5 bn
  • Ensure cash reserves maintained to ensure Business Continuity in case of extended non-payment by debtors
  • Utilise some cash reserves for important projects that require capital expenditure, refurbishments, infrastructure, new equipment etc

Business Continuity Management (BCM)

Target

  • Plan 100% complete

IR 2021

  • Phase 1 complete

Progress for FY22

  • Phase 2 complete
  • All BCP plans signed off
  • 2 successful tests in live situations (riots and floods)

target for 2022/2023

  • Operationalised
  • Test in live environments

Business Continuity Management (BCM)

Target

  • Plan 100% complete

IR 2021

  • Phase 1 complete

Progress for FY22

  • Phase 2 complete
  • All BCP plans signed off
  • 2 successful tests in live situations (riots and floods)

target for 2022/2023

  • Operationalised
  • Test in live environments

Staff cost as a % of Total Costs

Target

  • 44%

IR 2021

  • 44.55%

Progress for FY22

  • 39.9%

target for 2022/2023

  • <=44%

Staff cost as a % of Total Costs

Target

  • 44%

IR 2021

  • 44.55%

Progress for FY22

  • 39.9%

target for 2022/2023

  • <=44%

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Ⓒ 2022 - All Rights Are Reserved. SANBS Integrated Report. Created by Joshero (Pty) Ltd.

Head Office

  • 1 Constantia Boulevard Constantia Kloof, Roodepoort, 1709
  • (011) 761-9000
  • customerservice@sanbs.org.za

Main Links

Ⓒ 2022 - All Rights Are Reserved. SANBS Integrated Report. Created by Joshero (Pty) Ltd.